Question

Problem 7-1A Special journals, subsidiary ledgers, trial balance-perpetual LO C3, P1, P2

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Church Company completes these transactions and events during March of the current year (terms for all its credit sales are 2/10, n/30).

Mar.		1				Purchased $33,000 of merchandise from Van Industries, invoice dated March 1, terms 2/15, n/30.
		2				Sold merchandise on credit to Min Cho, Invoice No. 854, for $13,200 (cost is $6,600).
		3		(a)		Purchased $990 of office supplies on credit from Gabel Company, invoice dated March 3, terms n/10 EOM.
		3		(b)		Sold merchandise on credit to Linda Witt, Invoice No. 855, for $6,600 (cost is $3,300).
		6				Borrowed $72,000 cash from Federal Bank by signing a long-term note payable.
		9				Purchased $16,500 of office equipment on credit from Spell Supply, invoice dated March 9, terms n/10 EOM.
		10				Sold merchandise on credit to Jovita Albany, Invoice No. 856, for $3,300 (cost is $1,650).
		12				Received payment from Min Cho for the March 2 sale less the discount.
		13		(a)		Sent Van Industries Check No. 416 in payment of the March 1 invoice less the discount.
		13		(b)		Received payment from Linda Witt for the March 3 sale less the discount.
		14				Purchased $30,000 of merchandise from the CD Company, invoice dated March 13, terms 2/10, n/30.
		15		(a)		Issued Check No. 417, payable to Payroll, in payment of sales salaries expense for the first half of the month, $14,600. Cashed the check and paid the employees.
		15		(b)		Cash sales for the first half of the month are $52,800 (cost is $42,240). (Cash sales are recorded daily, but are recorded only twice here to reduce repetitive entries.)
		16				Purchased $1,510 of store supplies on credit from Gabel Company, invoice dated March 16, terms n/10 EOM.
		17				Received a $3,000 credit memorandum from CD Company for the return of unsatisfactory merchandise purchased on March 14.
		19				Received a $495 credit memorandum from Spell Supply for office equipment received on March 9 and returned for credit.
		20				Received payment from Jovita Albany for the sale of March 10 less the discount.
		23				Issued Check No. 418 to CD Company in payment of the invoice of March 13 less the March 17 return and the discount.
		27				Sold merchandise on credit to Jovita Albany, Invoice No. 857, for $9,900 (cost is $3,960).
		28				Sold merchandise on credit to Linda Witt, Invoice No. 858, for $3,960 (cost is $1,584).
		31		(a)		Issued Check No. 419, payable to Payroll, in payment of sales salaries expense for the last half of the month, $14,600. Cashed the check and paid the employees.
		31		(b)		Cash sales for the last half of the month are $58,080 (cost is $34,848).
		31		(c)		Verify that amounts impacting customer and creditor accounts were posted and that any amounts that should have been posted as individual amounts to the general ledger accounts were posted. Foot and crossfoot the journals and make the month-end postings.

Assume the following ledger account amounts Inventory (March 1 beg. bal. is $61,000), Z. Church, Capital (March 1 beg. bal. is $61,000) and Church Company uses the perpetual inventory system.

Problem 7-1A Part 3

Post information from the journals in Part 2 to the general ledger and the accounts receivable and accounts payable subsidiary ledgers.

Answer 1

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Sales Journal
Date	Account Debited	Invoice no	Accounts Receivable Dr	Cost of Goods Sold Dr
			Sales cr	Inventory Cr
Mar 2	Min Cho	854	$                                13,200	$                                  6,600
Mar 3	Linda Witt	855	$                                  6,600	$                                  3,300
Mar 10	Jovita Albany	856	$                                  3,300	$                                  1,650
Mar 27	Jovita Albany	857	$                                  9,900	$                                  3,960
Mar 28	Linda Witt	858	$                                  3,960	$                                  1,584
Total			$                                36,960	$                                17,094
Purchase Journal
Date	Account	Date of Invoice	Terms	Accounts Payable Cr	Inventory Dr	Office Supplies Dr	Other Account Dr
Mar 1	Van Industries	Mar 1	2/15,n/30	$                                33,000	$            33,000
Mar 3	Gabel Co	Mar 3	n/10 EOM	$                                      990		$                             990
Mar 9	Spell Supply	Mar 9	n/10 EOM	$                                16,500			$                          16,500
Mar 14	CD Com	Mar 13	2/10,n/30	$                                30,000	$            30,000
Mar 16	Gabel Company	Mar 16	n/10 EOM	$                                  1,510			$                            1,510
Total				$                                82,000	$            63,000	$                             990	$                          18,010
Cash Receipt Journal
Date	Account Credit	Cash Dr	Sales Discount Dr	Accounts Receivable Cr	Sales Cr	Other Account Cr	COGS Dr, Inv Cr
Mar 6	Note Payable	$              72,000				$                       72,000
Mar 12	Min Cho	$              12,936	$                                      264	$                                13,200
Mar 13	Linda Witt	$                 6,468	$                                      132	$                                  6,600
Mar 15	Sale	$              52,800			$            52,800		$                          42,240
Mar 20	Jovita Albany	$                 3,234	$                                        66	$                                  3,300
Mar 31	Sale	$              58,080			$            58,080		$                          34,848
Total		$            205,518	$                                      462	$                                23,100	$         110,880	$                       72,000	$                          77,088
Cash Disbursment Journal
Date	Ck NO	Payee	Accounts Debited	Cash Cr	Inventory Cr	Other Account Dr	Accounts Payble Dr
Mar 13	416	Van Industries	Van Industries	$                                32,670	$                  330		$                          33,000
Mar 15	417	Payroll	Sales Salaries Expense	$                                14,600		$                       14,600
Mar 23	418	CD Company	CD Company	$                                26,460	$                  540		$                          27,000
Mar 31	419	Payroll	Sales Salaries Expense	$                                14,600		$                       14,600
Total				$                                88,330	$                  870	$                       29,200	$                          60,000
General Journal
Date	Account	Debit	Credit
Mar 17	Accounts Payable	$                 3,000
	Inventory		$                                  3,000
Mar 19	Accounts Payable	$                    495
	Office Equipment		$                                      495